Appendix A: DBM Complexity Diagnostic
Purpose
The purpose of the complexity diagnostic is to establish the determinacy of
an intended project proposition, thereby establishing its complexity level and,
with that, establishing the optimal implementation approach and associated performance
expectation.
Target Audience
The audience for the complexity diagnostic is first and foremost the project
team. These individuals will use this information to flesh out alternative approaches
to the solution and will communicate to decision authorities the particulars for
each option.
Opportunity
With higher-level complexities, the VIP faces the choice of reducing the complexity
with an alternative lower level proposition one that is perhaps less functionally
robust, with the opportunity to evergreen the solution through time. For example,
Commercial Off the Shelf can be considered in lieu of high technology development.
A primary consideration for stakeholders here is the fitness for purpose vs.
cost and schedule consideration. The stakeholders will have a choice between a
lower target fitness for purpose and the associated lower cost, faster schedule
expectation, or a higher target fitness for purpose and the associated high cost,
longer schedule expectation.
With these expectations established in concert with stakeholders, the VIP should
be accorded support for the real challenge inherent in the selected implementation.
There is no escaping reality!
A further step toward realism is achieved in presenting the obligations of
senior corporate management toward supporting the facilitation of the client regarding
external-to-project expectations.
Complexity Template
The complexity diagnostic is provided below. In addition to the diagnostic,
a secondary and yet important complementary diagnostic is the risk assessment.
Level 5
Custom/
Externally Determinate/
Public Rationality
Dynamic Complexity
Performance Expectation: There is no basis for performance assessment
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Determinacy
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Treatment of Complexity
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Identify any public facilitation that will impact the project baselines
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Brief narrative on treatment of the complexity whether to confront or
ignore and basis for legitimacy of the latter.
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1.
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2.
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3.
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Level 4
Custom/
Externally Determinate/
Corporate Rationality
Dynamic Complexity
Performance Expectation: There is no basis for performance assessment
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Determinacy
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Treatment of Complexity
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Identify any external-to-project facilitation that will impact the project
baselines
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1.
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2.
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3.
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Level 3
Custom/
Internally Determinate/
Dynamic Complexity
Performance Expectation: Low
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Determinacy
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Treatment of Complexity
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1.
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2.
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3.
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Level 2
Custom/
Internally Determinate/
Detail Complexity
Performance Expectation: High
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Determinacy
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Treatment of Complexity
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1.
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2.
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3.
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Level 1
Standard/ Internally Determinate/ Detail Complexity Performance Expectation: Greater
than 100%
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Determinacy
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Treatment of Complexity
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1.
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2.
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3.
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Risk Assessment
Proposition Name ______________________________
Complexity Level ______________________________
Risk Characterization:
Risk Event (known unknowns)
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Probability of Occurrence
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Impact should the event occur
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Treatment of risk
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Dollarized Contingency for Cost and Schedule
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1.
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2.
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3.
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Stakeholder Decision
With this information, the project team and the Stakeholders can make an informed
decision amongst the alternative prospective implementations with due regard to:
- Target Cost,
- Fitness for purpose,
- Performance Expectation, and,
- Risk contingency.
Next month, in Part 6, the
last in the series covering Mark Seeley's challenging book, we will add three
more appendices covering a Performance Dashboard; a review of the impact
of Human Characteristics; and some consequential Considerations when it
comes to Contracting.
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